Here Are The Keys To Schlumberger's Earnings

Schlumberger, the world’s largest oil field services firm, will report its third quarter earnings on October 19. Here are a few factors that we believe will impact the company’s quarterly performance.

In the second quarter, the company reported sequential revenue growth of about 5%, with revenues from international operations growing by about 9% while revenues from North America declining marginally. We expect the trend of modest revenue growth to continue into the third quarter as well on continued international growth and enhanced pricing on recently negotiated contracts. However, we believe that margin growth may be sluggish due to pricing pressures in the North American market.